What is a candlestick chart?

A candlestick chart is a type of financial chart that shows the price movement of derivatives, securities, and currencies, presenting them as patterns. Candlestick patterns typically represent one whole day of price movement, so there will be approximately 20 trading days with 20 candlestick patterns within a month.

How are candlestick patterns formed?

The candlestick patterns are formed by grouping two or more candlesticks in a certain way. Sometimes powerful signals can also be given by just one candlestick. In this blog, we will discuss all 35 powerful candlestick patterns, but before that, let us discuss how to read candlestick charts.

When does a hammer pattern occur on a candlestick chart?

The hammer pattern occurs on a candlestick chart when the trades are significantly lower than the opening, but will rally within that time period to close near the opening price.

What is a long line candlestick pattern?

The Long Line candlestick pattern is a 1-bar pattern.It simply consists of a long body candle.It can be bearish or bullish. What is a long line candle? Candlesticks provide different visual hints on the trading charts for a better and easy understanding of the...